Brand Value and Long-Run Stock Returns

55 Pages Posted: 8 Jul 2022 Last revised: 31 Jan 2023

Date Written: June 26, 2022


Using Interbrands’ data as well as a novel text-based measure of brand value, we find that an equal-weighted portfolio of best brands earns a monthly excess return of at least 25 bps. This result is not due to firm characteristics, industry composition, small-cap stocks, or organization capital. The excess returns are driven by companies that develop their brands internally (i.e., not by acquisitions) and analysts underestimate future earnings of brand names in their forecasts. We highlight serious limitations of measuring brand value using past advertising expenses and find no abnormal returns associated with this (input) measure of brand value.

Keywords: Brand value, intangible assets, excess returns, undervaluation

JEL Classification: G01, G11, G14

Suggested Citation

Boustanifar, Hamid and Kang, Young Dae, Brand Value and Long-Run Stock Returns (June 26, 2022). Available at SSRN: or

Hamid Boustanifar (Contact Author)

EDHEC Business School ( email )

393 Promenade des Anglais – BP 3116
Nice, 06202

Young Dae Kang

The Bank of Korea ( email )

Korea, Republic of (South Korea)

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